Which of the following operations of RBI is/are likely to increase liquidity in the market?
1. Increase in reverse repo rate
2. Decreasing the Cash reserve ratio
3. Increase in statutory liquidity Ratio
Select the correct option from codes given below:

Answer: [A] 2 Only

Only second statement is correct. Increase in reverse repo rate and increase in SLR will decrease the liquidity in the market.

This question is a part of GKToday's Integrated IAS General Studies Module